U.S. chip maker Nvidia Corp has begun producing a new advanced chip for China that complies with new regulations designed to prevent China from accessing cutting-edge technologies like artificial intelligence (AI).
The A800 chip is the first reported effort by a U.S. semiconductor company to develop powerful processors for China that comply with new U.S. trade rules. According to Nvidia, the restrictions on exporting might cost the company hundreds of millions of dollars.
“The A800 meets the U.S. government’s clear test for reduced export control and cannot be programmed to exceed it,” the Santa Clara, California-based chipmaker said.
U.S. new regulations passed in early October effectively barred Chinese chipmakers from exporting advanced microchips and equipment used to manufacture highly developed chips, as part of an effort to hamper China’s semiconductor industry and in turn the military.